White Crest Capital, LLC​​

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White Crest Capital is here to help all businesses of any size with your COVID-19 related financial lending needs.

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White Crest Capital is here to help your business stay afloat due to the pandemic crisis.
We are not robots – we care about our customers and work with each business owner individually to understand their needs and help them grow their business.
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White Crest Capital

COVID Financial Relief For Business​

Businesses across the country are feeling the effects of the coronavirus. With employees home sick with disturbing symptoms or too scared to come in, many businesses can no longer stay open or find that they are backlogged in their work. Other companies have followed safety precautions, including monitoring staff for fevers, regularly disinfecting surfaces and practicing social distancing, which has caused them to slow down in the amount of work that they can accomplish each day. While businesses of all sizes have found this to be an especially difficult time, small businesses have had it particularly hard.

Problems For Small Businesses

A small business is defined as any company that has fewer than 500 employees. Surprisingly, 99 percent of businesses operating in the United States are currently classified as small businesses, accounting for over 30 million businesses. These companies in turn employ almost 50 percent of people who work in the United States. As you can imagine, finance problems can create dire circumstances for many of these businesses, their owners and their employees. While some of the larger companies can handle financial setbacks that last a month or two, many find that they are forced to close their doors permanently if they do not get financial help quickly enough.

A survey performed by the National Small Business Association (SBA) showed that approximately 75 percent of owners of small companies are concerned about their financial situations during the COVID-19 pandemic. Many have found that sales have been down as customers no longer desire their services. Some customers simply do not have enough money for discretionary spending at this time. Others do not need certain services during the U.S. lockdown and the wide-ranging stay-at-home policies.

Thanks to leadership from President Donald Trump working with Treasury Secretary Steven Mnuchin, many things are being done to help small businesses. Although the process is often confusing and the loan program has hit several bumps in the road, the Government is currently making Emergency relief for businesses a priority as it attempts to revive the struggling economy of the entire nation.

What Types of Financial Relief Are Currently Offered?

The SBA, an agency of the United States, has been tasked with caring for small businesses as well as start-ups and entrepreneurs. This agency always works hard to look out for small businesses during times of disasters and emergencies. At this unprecedented time when all states have declared a state of emergency, the SBA finds itself in a unique position. To rise to the occasion, the SBA now offers several special financial aid packages through guidance from the President and the Treasury Secretary as well as by using resources given to it through Congress. These coronavirus relief options are designed to help small businesses get through this difficult time with financial help for company operations and their employees.

While traditional funding is still in place, you can now find a few new loan programs that have been temporarily put into place by the CARES Act, which was signed into law on March 27. The most popularly discussed option is the Paycheck Protection Program, also called PPP. In addition, the SBA provides the EIDL Loan Advance program, SBA Express Bridge Loans and SBA Debt Relief.

SBA Express Bridge Loans let companies that already work with an SBA Express Lender find quick access to amounts up to $25,000. This fast turn-around time can help businesses continue to operate and pay their employees immediately. The money does have to be payed back in full.

The SBA Debt Relief program pays certain debts for some businesses. Under the program, businesses can get up to six months of principal and interest payed for by the SBA for certain loans taken out before September 27, 2020. In addition, the SBA is deferring payments on SBA Serviced Disaster Loans until December 31, 2020.

Paycheck Protection Program (PPP)

The Paycheck Protection Program is one of the most popular parts of the CARES Act because it provides assistance to employees who might otherwise be laid off during COVID. This can then help employees stay with the company, reducing the company’s need to hire and train new workers in the future. To participate in this program, the company must keep its employees on the payroll for at least eight weeks, and it must use the money from the business loan to pay for rent, utilities, employee paychecks and mortgage interest only. Loans may be as high as $10 million, providing important Cash flow to affected businesses. Businesses do not have to pay back the loans as long as at least 75 percent of the money was used to pay workers. For PPP loans that do have to be payed back, the money only comes with a 1% interest rate.

EIDL Loan Advance

The Paycheck Protection Program is one of the most popular parts of the CARES Act because it provides assistance to employees who might otherwise be laid off during COVID. This can then help employees stay with the company, reducing the company’s need to hire and train new workers in the future. To participate in this program, the company must keep its employees on the payroll for at least eight weeks, and it must use the money from the business loan to pay for rent, utilities, employee paychecks and mortgage interest only. Loans may be as high as $10 million, providing important Cash flow to affected businesses. Businesses do not have to pay back the loans as long as at least 75 percent of the money was used to pay workers. For PPP loans that do have to be payed back, the money only comes with a 1% interest rate.

Additional Financial Relief Funding

The original Coronavirus Aid, Relief and Economic Security (CARES) Act that was passed at the end of March 2020 provided $376 billion for small businesses. However, with the huge number of small businesses that were in desperate need of financial help, this money quickly ran out, leaving company owners and entrepreneurs scrambling to keep their companies afloat. On April 21, Congress again approved another huge influx of cash for lending to businesses, allowing lenders to once again continue the process of approving loan applications. Of the $370 billion approved, $310 billion has been earmarked for PPP loans, and the remaining $60 billion has been earmarked for other types of disaster relief loans.

What Happens When Funds Run Out?

Despite this huge amount of funding that has made plenty of news headlines over the last several weeks, it is almost certain that the SBA and lenders will once again run out of money to help keep small businesses open, employees paid and the nation’s economic market humming along smoothly. So far, SBA lenders have only processed and paid out loans to a mere 20% of applicants, and there are many more businesses that have not yet applied.

Some banks have already begun warning that there will almost certainly not be enough money to go around to help all businesses in need. Some larger companies have begun returning money that they received through SBA loans in order to help smaller, independent companies instead. In addition, the SBA has now made it clear that it is not its intention to provide loans to publicly traded companies. This could make the existing money last longer and reach farther than it would have otherwise.

Getting Help In Confusing Times

Clearly, these are confusing times for owners of small businesses despite the overwhelming amount of financial help that has come from the federal governing agencies and SBA lenders. Navigating the loan application process and understanding the rules regarding which loans need to be repaid and which do not can be harrowing for many companies. Having someone like us to help them through this process and to advocate for them to lenders can mean the difference between having a thriving company or having to close the company’s doors weeks from now.

Many people are calling for the SBA to relax repayment rules and for making the existing rules easier to understand. If owners of small businesses have trouble understanding the loan conditions, they may not apply in the first place, and this could cause some companies irreparable damage during this already uncertain time surrounding the COVID-19 infection pandemic.

However, thanks to loans from SBA lenders, many companies will be able to come through this otherwise difficult time with a firm customer base and loyal employees as they take advantage of Emergency relief for businesses through new loan programs. As SBA lenders look at loans on a first-come, first-served basis, it is important for companies to get their applications in quickly. White Crest Capital can help small businesses find relief for their financial needs by helping with loan applications and much more.

White Crest Capital, LLC
300 State Street
Suite 93417
Southlake, TX  76092
(469) 200-1975

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